News

Multi-Family Rehab Loan Program

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The City of Long Beach offers 0% interest loans to qualified owners of multi-family rental properties consisting of five or more units located within the City.

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Fall Outlook: Presidential Race and Congressional Issues

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The “summer of Trump” has come to a close, so now we will see whether or not “the Donald” can continue his dominance of the GOP presidential field into the fall. He continues to poll well with a commanding lead over everyone else, but there are more debates coming and he has shown some difficulty in responding to questions of policy, especially on foreign affairs issues. Style-over-substance only carries a candidate so far before he or she must show some ability to tackle the issues. Look what happened to 2012 front-runner Rick Perry when he couldn’t remember the name of one federal agency. I suspect the mortar fire will increase on Donald Trump during the next debate as the other candidates all recognize they have to bring him down to have any chance of winning. Also watch the performance of Carly Fiorina who was the winner of the first “happy hour” debate. Now that CNN has refined its selected process for the debates, Carly Fiorina gets to participate in the prime time contest.

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A Fresh Page

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Wow — what a great, but fast year 2017 was! It is hard to believe all that has happened last year, and we expect even more, bigger and crazier things again for this great year we have ahead of us. Like my mentor once explained, starting the New Year (or even a new day) with a fresh page and a clean slate, people can put what we want on the pages of our futures, which gives us unique opportunities that other animals on this planet are not offered—a goose must fly south for the winter. Why? Because it’s a goose! If a tree doesn’t like where it lives, it cannot pack up and move. We, on the other hand, have been given the dignity of choice.


It is my hope that all of us have taken the time to reflect upon last year and then create a new and improved plan for this year—not just a wish list, but sound goals that are achievable, and at the same time will stretch and grow us. When we do this with our own lives, we can do it in our businesses, communities and beyond. A great way to learn how to better plan and execute new plans in our own lives and communities is to get involved with our AACSC Committees that are run by our all-volunteer Board of Directors. Not only is this a great way to get plugged into the community and to help others as well as to really learn how to “preserve, protect, and enhance” the rental housing industry in Southern California, but also a way to show you how a focused group of people come up with and execute great ideas! Luckily, we are not trees who are stuck somewhere in the snow year ‘round, stuck in a constant lightning storm—or even stuck as a restroom for a pack of wolves in a forest—we are all here by choice in beautiful SoCal and each of us has a responsibility to leave everything better than how we found it, and we do that by becoming part of a great team complete with leaders and mentors.

One great lesson I have learned about uniting on the same front and becoming a team, is that as neighbors — especially in this country—we always want to do what is best and what is right, but we tend to differ on how we define that or get there. I want to reassure everyone that things that will make ourselves, and our industry, businesses and region better are your ideas, your courage to stand up and respectfully say something if it doesn’t feel right, and your involvement in your community.

We need you and we need your voice, your help, and your ideas. Please reach out and let us know your interests — we have so much to choose from. From our local and state legislative committees, trade show and membership committees, to education, golf tournament fundraising, and Political Action committees—we have a little something for all interests. Pick one of interest to you and let’s partner up. Everyone here will be heard, respected, listened to, and given a chance.

As a great help to your training, remember that there is no better way to school yourself and your teams than to get into the top of the line classes that AACSC offers. The prices are right, and the info is priceless. Learn how to keep compliant of the law and still be able to care for your residents and properties.

Regularly check AACSC’s website and your email for announcements on the upcoming courses.

Before finishing up here, we want to thank all of our vendors who continue to sponsor our events and continue giving us the best workmanship in the business — we could not do it without you!

Thank you so much for giving me this opportunity to lead the AACSC—please, come work alongside us — we can really help each other a lot in 2018!

Cheers!

October 2017

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It’s October and I can’t believe that there are only 86 shopping days left until Christmas. Of course, this does not include Hanukkah, Kwanzaa or other forms of holiday celebration. In the end, I love all the holidays—from Halloween to Thanks - giving to Christmas. Whether it is created by Hallmark Cards, made up to celebrate chocolate, our Administrative Assistants, grandparents, etc., I find joy in the celebration and reminder that there are so many things to be grateful for and that we should not take anything for granted. So enjoy the beginning of Fall and all the upcoming holidays.

Now on to some more pressing news. An update this month:

  • At the direction of the Los Angeles County Supervisors, staff have not yet returned with their report on Tenant Protections. Until this happens, a workgroup will not be able to be formed. Will keep you advised of any progress.
  • Legislature is on holiday recess until the first of the year. At this writing, the Governor still has an opportunity to sign bills and veto, so we will update you on this next month.
  • Tenant rights groups are beginning to protest at our Management Companies. Be aware as they may come anytime and are wearing black masks (that may change as well). These groups are hosting community training sessions to teach them how to be a community rights advocate.
  • Rent Control continues to ramp up and while things appear to be relatively quite right now, we also know that there is a continued push to take this Statewide.


At the Association, I need to give a BIG THANK YOU to the AACSC staff for making the Trade Show a GREAT success this year. Jeannie helped us up the ante on the look, Tom brought us over 30 NEW vendors. Our Board Members really stepped up and helped us meet and greet members, en courage new members to join us in our fight against Rent Control, and our PAC Trustees shared with everyone who came by about the value and benefit of contributing to the PAC. Sophia, Donna, Rachael, Oliver and Terri did everything else in our AACSC booth and as usual we enjoyed seeing all of you!

Proposed Regulation on Applicant Inquiries

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On January 17, 2017, the Department of Fair Employment and Housing Council will consider adopting new regulations regarding the discriminatory effect, discriminatory land use practice and use of criminal history information when renting residential real property.

If that has not gotten your attention, then consider the impact of the following regulatory proposal:

“Any Practice of a Person or Owner that includes the use of, inquiries about, or solicitation of information about criminal history is unlawful if it has a discriminatory effect under Article 5 and Government Code section 12955.8.”

The proposed regulation may bar property owners and managers from inquiring about an applicant’s criminal history. If that language does not get your attention, then consider the next three proposed regulations:

  1. “A notice, advertisement, application, or other written or oral statement regarding criminal history or criminal records that conflicts with the provisions of this Article and Article 5 shall be a violation of the Act.”
  2. “Overbroad or arbitrary inquiries into or use of criminal history information in housing may have a discriminatory effect on members of Protected Classes. A discriminatory effect may be established through the use of conviction statistics or by any other evidence (emphasis added) that establishes a discriminatory effect.”
  3. “State or national level statistics showing substantial disparities in the conviction records of individuals based on membership in a Protected Class are presumptively sufficient to establish a discriminatory effect of a Practice under Article 5.”


Property owners and managers will find that they may never be able to consider an applicant’s history. The regulations try to mitigate the above mentioned regulations by permitting a property owner or manager to make inquiries of the applicant if certain prongs of a legally sufficient justification are met. To do that, the property owner and manager must:

  1. “Identify a specific substantial, legitimate, nondiscriminatory interest to support the Practice, such as a risk to the safety of its residents.” Owners cannot predict the future.
  2. “Take into account the nature and severity of an individual’s conviction and the amount of time that has passed since the criminal conduct occurred.” Property owners big and small will be required to hire experts to make recommendations regarding each applicant.
  3. “Limit consideration to convictions that are directly related to the individual’s capacity and likelihood of fulfilling the obligations related to the housing or services” (conviction of a burglary versus an alcohol related offense). Once again, property owners will find it extremely difficult to meet this burden.
  4. “Prove that its Practice actually achieves the identified interest, which includes proving that its Practice accurately distinguishes between criminal conduct that poses a demonstrable risk to its proffered interest and criminal conduct.” The shift of the burden of proof is squarely on the property owner and manager which this also forces quantifiable proof by each owner and manager for each applicant to rent real property.


To make sure that we understand the totality of the proposed regulations, the following should be of great concern: “Practices with a Discriminatory Effect [that are] Prohibited … A Practice [that] has a discriminatory effect where it actually or predictably results in a disparate impact on an individual or group of individuals or creates, increases, reinforces, or perpetuates segregated housing patterns because of membership in a Protected Class.”

The language applies to every decision a property owner makes regarding the rental of real property.

Yes, of course, this may challenge the decision in Harris v Capitol Growth Investors XIV (1991) 52 Cal.3d 1142, 278 Cal.Rptr. 614; 805 P.2d.873 regarding economic discrimination which held in pertinent part that property owners and managers can set reasonable credit standards.

This is just one of several DFEH Council proposedregulations. Are you interested in finding the outcome?If so, we hope you join the Association orremain an active member.

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